Changes to reporting business expenses from April 2016

HMRC have confirmed that all dispensations agreed until 5 April 2016 will not apply after this date and there will be no requirement to report business expenses on a form P11D.

In the current year, employers can request a dispensation from HMRC to cover all genuine business expenses such as travel, business entertainment, and company car fuel avoiding the requirement to declare these on a P11D.

These changes will ease the burden of employers from the strict July deadline and hefty penalties issued for non-compliance.

We would recommend that you continue to have a system in place for checking that all claims made as a deduction are valid business expenses. 

All other non-allowable expenses and benefits in kind will be subject to tax and National Insurance as normal and continue to be reported on a form P11D. Any expenses or benefits provided under salary sacrifice arrangement will need to be paid after deducting tax and National Insurance. 

For more information on the above or advice on getting better controls in place for your business please call Cooper Curtis Accountants on 0845 303 1144.


Cooper Curtis is different in that they specialise in growing successful recruitment businesses through their Accounting Advisory service.

Contact Brian or Caroline on 0845 303 1144 for a chat to see how we can help you raise your game. 


Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.